BENEFITS FOR ALL – COOPERATIVES

FACTS AND FIGURES Cooperative Banks, Commodity and Service Cooperatives

FACTS AND FIGURES Cooperative Banks, Commodity and Service Cooperatives

2

Figures as of 31 December 2014, unless otherwise indicated

Editorial deadline: 31.05.2015

Publisher: DGRV – Deutscher Genossenschafts- und

Raiffeisenverband e.V. (German Cooperative and Raiffeisen

Confederation, reg. assoc.), Berlin

Edited by, unless indicated by name: DGRV, Berlin

3

CONTENT

1. COOPERATIVES – A SUCCESSFUL IDEA WITH A FUTURE ................................................ 4 2. THE COOPERATIVE ORGANIZATION: A GENERAL OVERVIEW ......................................... 6 3. LINES OF BUSINESS OF THE COOPERATIVE ORGANIZATION ......................................... 7

3.1 COOPERATIVE FINANCIAL NETWORK .................................................................... 7

3.2 RAIFFEISEN COOPERATIVES ................................................................................. 10

3.3 SMALL-SCALE INDUSTRY COMMODITY AND SERVICES COOPERATIVES ...... 13

3.4 CONSUMER COOPERATIVES ................................................................................. 16 3.5 ENERGY COOPERATIVES……………………………………………………………….17

4. COOPERATIVE FEDERATIONS ............................................................................................ 18 5. COOPERATIVES IN EUROPE ............................................................................................... 21 6. DGRV – SUCCESSFUL CONSULTANCY ACROSS THE GLOBE ........................................ 22 7. IMPORTANT ADDRESSES AT A GLANCE ........................................................................... 24

4

1. COOPERATIVES A SUCCESSFUL IDEA WITH A FUTURE

The success story of German

cooperatives is inseparably linked

with two personalities: Friedrich

Wilhelm Raiffeisen (1818 - 1888)

and Hermann Schulze-Delitzsch

(1808 - 1883).

In 1847, Friedrich Wilhelm Raiff-

eisen set up the first society for

those in need in the rural

population. He went on to found

the „Heddersdorf Loan Society" in

1864. At the same time, Hermann

Schulze Delitzsch started a

campaign in aid of craftsmen who

were going through difficult times.

Based on the principles of self-

help, self-governance and

individual responsibility, he

founded the first „raw-material

associations" for carpenters and

shoemakers in 1849 and the first

„advance-disbursement society",

predecessor of the current Volks-

banken, again in Delitzsch in 1850.

The „food association" founded in

1850 in Eilenburg is considered to

be the first consumer cooperative

with collective liability.

The cooperative idea spread

across Germany and beyond in

the decades which followed. The

local primaries founded regional

and national centres to ensure and

expand their services to the

members. As early as the 1870s,

cooperatives united to form their

own federations.

In 1889, the Cooperative Act

came into force regulating all

matters pertaining to the specific

legal form of cooperatives, such

as compulsory cooperative

auditing.

After the Second World War and

during the partition of Germany,

cooperatives developed along very

different lines. Cooperatives in

East Germany were not

organizations in the Raiffeisen

and Schulze-Delitzsch sense at all

and were integrated in the planned

economy rather than adhering to

the principles of individual respon-

sebility and self-governance.

In West Germany the Raiffeisen

and Schulze-Delitzsch organiza-

tions merged in 1972 and the

German Cooperative and Raiff-

eisen Confederation, the top-level

organization of the German

cooperatives, was set up in the

process. Increasingly fierce com-

petition and growing economic

globalization have left their mark

on the cooperatives as well. Over

the course of time, cooperatives

have merged to form larger entities

with enable them to continue

operating successfully for their

members. Of the more than 26,000

cooperatives which existed in

1950, 5,643 cooperatives are

currently left as a result of a policy

of planned mergers, serving 19.4

million members as compared to

no more than 4.4 million in 1950.

In consequence, cooperatives

under the roof of the DGRV

represent the economic organiza-

tion with the largest membership in

Germany at present.

The cooperative organization is not

a centralized structure but a

bottom-up group organization.

FRIEDRICH WILHELM RAIFFEISEN (LEFT) AND HERMANN SCHULZE-DELITZSCH (RIGHT).

5

THE VOLKSBANKEN AND RAIFFEISENBANKEN OFFER PERSONAL FINANCIAL ADVICE.

THE MEMBERS OF THE HEALTH LANDSCAPE

VULKAN EIFEL EG POSITION THEIR REGION AS A

PROVIDER OF SUSTAINABLE HEALTH PROMOTION.

Services to members are rendered

on the basis of the principle of

subsidiarity, in other words the

centralized top-level enterprises

will always become involved if it

appears to be impossible or

inappropriate to take action at the

local level, for example.

Self-help and individual initiative

are becoming increasingly impor-

tant in today's world, while the

state is disengaging from many of

its traditional responsibilities. This

is trend which, over the last few

years, has attracted a great deal of

interest in the foundation of new

cooperatives. In the last three

years, some 580 cooperatives

have been newly founded under

the roof of the DGRV.

Cooperatives continue to provide

purchasing or marketing functions.

However, additional lines of

business, such as management

consultancy, IT operations,

accountancy, laboratory testing,

quality management, education

and training programs as well as

activities such as waste mana-

gement, recycling and environ-

mental protection, are also now

outsourced to cooperative

organizations.

Cooperatives are not only active in

traditional sectors such as agricul-

ture, retail or the trades, but also in

healthcare, energy or in the

provision of previously public

services.

The amendment of the Coopera-

tive Act in 2006 has enabled

cooperatives to provide social

services and cultural programs as

well. As a result, they are also

suitable for the organization of

cooperation between medical

doctors and nursing staff or as a

legal form for the running of

healthcare centres, for bringing

together publicly-spirited citizens

or uniting artists working for a

common purpose.

They may also serve as an alter-

native to local special-purpose

associations or as a structure for

the organization public-private

partnerships. The registered

cooperative as a legal form is

therefore ideal for cooperation in

the economy and society. Tailored

to their specific legal requirements,

it enables individuals to achieve

collectively what they would not be

able to achieve lone.

6

SCHWÄBISCH HALL IS THE LARGEST

BAUSPARKASSE IN GERMANY UND FIRMLY

ROOTED IN THE COOPERATIVE FINANCIAL

GROUP.

2. THE COOPERATIVE ORGANIZATION

GENERAL OVERVIEW

The cooperative organization is

by far the largest business organi-

zation in Germany in terms of

membership. Currently, 19.4

million individuals are members of

a cooperative under the roof of the

DGRV, not including the members

of housing cooperatives which are

not affiliated to the DGRV.

Statistically this means that one in

four citizens in Germany is a

member of a cooperative.

Members make use of the coope-

rative form of organization to

obtain access to markets and to

improve their market position.

Primary cooperatives maintain

their own centralized enterprises

and specialized institutions both

at regional and national level in

order to render special services in

an efficient and cost-effective

manner. The Cooperative

enterprises undertake their work

on the basis of the principle of

subsidiarity.

Cooperative federations are set

up for the following functions: to

develop cooperative enterprises

into a viable organization, advi-

sing them in an effective manner,

setting common standards and

promoting their common interests.

There are four sector-specific

cooperative federations in addition

to the DGRV

> National Association of German

Cooperative Banks reg. assoc.

(German abbrev. BVR)

> German Raiffeisen Federation

reg. assoc. (DRV)

> DER MITTELSTANDSVERBUND

(SME Groups Germany)

> Central Federation of German

Consumer Cooperatives reg.

assoc. (ZdK)

7

MEMBERS OF THE COOPERATIVE BANKS (IN M)

VOLKSBANK EG WALTROP, THE NEWLY DESIGNED OFFICE IN HENRICHENBURG.

Further Information: National Association of German Cooperative Banks reg. assoc. (BVR)

3. LINES OF BUSINESS OF THE COOPERATIVE ORGANIZATION

3.1 COOPERATIVE FINANCIAL NETWORK

VOLKSBANKEN

RAIFFEISENBANKEN

Proximity to the customer, respon-

sibility for the region and partner-

ship with small and mid-sized

companies - these are the prin-

ciples on which the 1,047 German

local cooperative banks and other

institutions and companies of the

Cooperative Financial Network

base their activities.

As independent credit institutions

with around 190,000 staff mem-

bers nation-wide, the cooperative

banks provide more than 30

million customers with financial

services. One unique quality of the

cooperative banks

is their traditional duty to promote

the interests of their around 18

million members. This means that

over half of all customers of the

cooperative banks are simultane-

ously share-holders in their banks

- with all the accompanying

advantages and co-determination

rights. At the end of 2014, the

loans granted by the cooperative

banks amounted to a total volume

of € 482 billion, while deposits

amounted to more than € 591

billion of which € 200 billion alone

were savings deposits (including

savings bonds).

Overall, the cumulative balance

sheet total of the cooperative

banks at the end of 2014 amoun-

ted to just under € 788 billion.

Local banks are supported by

numerous product and service

providers, who enable even the

smallest institutions to offer their

customers all financial services

from a single source. These in-

clude, in addition to the coopera-

tive central banks - DZ BANK AG

and WGZ BANK AG - divisional

companies such as the building

society Schwäbisch Hall AG, R+V

Versicherung AG, Union Asset

Management Holding AG, the

8

HEADQUARTERS OF THE HEADQUARTERS OF THE INAUGURATION OF THE NEW BUILDING OF BERLINER VOLKSBANK EG SPARDA-BANK MÜNSTER EG RAIFFEISEN BANK EMSLAND- MITTE EG

Teambank AG and the

cooperative mortgage banks

Deutsche Genossenschafts -

Hypothekenbank AG, Münchener

Hypothekenbank eG and

WL Bank AG.

Two independent rating agencies

have confirmed that the coopera-

tive banking group is not only a

first-class, but above all a trust-

worthy and secure network. Both

Standard & Poor’s and Fitch

Ratings awarded the Cooperative

Services Network and all member

banks the premium network rating

“AA-“. Thus the agencies have

also honoured the protection

scheme of the group, operated by

the Bundesverband der Deutschen

Volksbanken und

Raiffeisenbanken (National

Association of German

Cooperative Banks), which has

guaranteed the port-folios of its

member institutions for over 80

years.

BALANCE SHEET TOTAL, DEPOSITS AND LOANS

OF THE VOLKSBANKEN RAIFFEISENBANKEN (IN BILLIONS OF EUROS)

9

VOLKSBANKEN RAIFFEISENBANKEN – THE COOPERATIVE FINANCIAL NETWORK

10

SILO OF THE RAIFFEISENAGRAR BAWINKEL-FREREN EG.

PORT FACILITY OF BayWa AGRICULTURE AT

REGENSBURG-OSTHAFEN.

3. LINES OF BUSINESS OF THE COOPERATIVE ORGANIZATION

3.2. RAIFFEISEN COOPERATIVES

COMMODITY AND SERVICE

COOPERATIVES WITHIN THE

RAIFFEISEN ORGANIZATION

2,316 commodity and service

cooperatives are operating today

in various lines of business in

Germany. Particularly in difficult

economic times farmers, horticul-

turists and winegrowers trust in the

cooperative principle of self-help

and assume individual

responsibility.

The marketing and service enter-

prises of German agriculture

cover and process the entire

range of agricultural products from

plants to animals. Cooperatives act

as bridge-builders to both domestic

and foreign markets. It is their

declared objective to achieve

excellent market prices and to

protect the independence of

farming members and their

businesses.

Cooperatives are reliable trading

and contractual partners of the

farming community by marketing

their crop and aggregate pur-

chases, and by storing and

distributing farm inputs.

More than 60% of the entire

quantity of milk produced is

processed by dairy cooperatives in

Germany. Each year, wine-

growers' cooperatives collect

one third of the grape harvest

and process it into wines of

different quality grades.

Cooperatives provide many and

diverse services and consul-

tancy, including repair services

and advice on how to meet market

and environmental requirements

when production is expanded. For

example, Raiffeisen cooperatives

analyze soil samples, advise on

environmentally friendly plant

protection, produce components

for animal feeds and define cri-

teria for the processing industry.

They also explore markets for new

products. In line with the motto

“we open up new markets”

they have supported the cultivation

and marketing of regenerative raw

materials and regenerative sources

of energy.

Cooperatives operate more than

850 petrol stations in Germany.

They supply fuel and petrol to

industrial, agricultural and private

customers alike and operate some

Further Information: Monika Windbergs, German Raiffeisen Federation reg. assoc. (DRV)

11

DAY OF THE GERMAN APPLE – THE

PRODUCERS PROMOTE FOR HEALTHY AND

ENVIRONMENTALLY CONSCIOUS FOOD.

IMPORTANT FIGURES OF THE RAIFFEISEN ORGANIZATION (AS OF 31-12-2014)

Raiffeisen number turnover cooperatives of coops in m €

3)

commodity business 1)4)

424 37,500

dairy cooperatives 1)

225 14,800

livestock, meat and breeding cooperatives

1)

92 6,600

fruit, vegetable and horticultural cooperatives

88 3,300

agricultural cooperatives 765 2,000

winegrowers cooperatives 1)

169 800

others 2)

553 1,000

total 2,316 66,000

1) incl. central cooperatives

2) incl. central cooperatives and other members

3) provisional figure 4) incl. revenues of the subsidiaries and participation of the cooperative enterprises

714 specialized DIY-markets. A

wide choice of high-quality pro-

ducts for homes and gardens and

animal food is available in more

than 1,565 Raiffeisen stores.

Cooperatives are also involved in

the recycling of recyclable ma-

terial. Their comprehensive range

of services helps to make rural

areas more attractive. Following

the motto “Raiffeisen – services

for everyone”, the large choice

of cooperative products and

services is greatly appreciated in

rural and suburban communities.

In the entire value chain from

stalls to the shop counter, Raiff-

eisen cooperatives act as impor-

tant and reliable partners to the

food-producing industry, food

retail trade and the food-producing

trades. Given their close ties with

producers and the cooperation

between primary and central

cooperatives, they are always

able to deliver the required

quantities and, in particular,

quality.

By collecting, storing and process-

ing they accumulate supplies of

marketable quantities. Coopera-

tives emphasize the need for

contractual ties, operate on the

basis of reliable quality manage-

ment systems and ensure im-

peccable certification of origin.

Quality and safety are the key to

all lines of business. Brand pro-

ducts of cooperative origin are

greatly appreciated by trading

partners and consumers at home

and abroad. Modern and efficient

Raiffeisen cooperatives have

emerged from the charitable self-

help organizations born of the

hardship of the 19th century.

They meet the high requirements

of food production in terms of

quality of raw materials and

finished products.

Greater competition on European

and international markets, continu-

ing structural change in agricul-

ture, and also a greater measure

of concentration in the upstream

and downstream stages of distri-

bution have also forced coopera-

tive enterprises to streamline

production and to continue

concentrating their economic

forces.

The process of adaptation is

already far advanced and will be

12

cooperatives number

central commodity cooperatives 1)

6

purchasing and marketing cooperatives 293

cooperative banks with commodities 125

dairy cooperatives 1)

225

livestock and meat cooperatives 1)

73

breeding cooperatives 19

fruit and vegetable cooperatives 67

flower cooperatives 21

winegrowers cooperatives 1)

169

agricultural cooperatives 765

forestry cooperatives 35

distilling cooperatives 101

fishery cooperatives 28

bioenergy cooperatives 3

drying-plant cooperatives 35

machinery cooperatives 52

grazing-land cooperatives 65

graft vine/viniculture cooperatives 3

other commodities cooperatives/service cooperatives 2)

231

1) incl. central cooperatives

2) incl. central cooperatives and other members

MARKET OF THE AGRAVIS AG - FRIENDLY AND

PROFESSIONAL STAFF OF THE RAIFFEISEN MARKETS

CREATE THE DIRECT LINE TO THE CUSTOMER.

THE DAIRY COOPERATIVES REFINE THE RAW

MATERIAL MILK TO HIGH-QUALITY PRODUCTS. IN THE

PICTURE: QUALITY CONTROL AT DMK GERMAN

MILCHKONTOR GMBH.

continued with determination.

Raiffeisen is an important eco-

nomic factor and employer,

especially for rural areas and the

people living there. Some 82,000

workers are currently employed in

the various sectors, including

trainees and retail and wholesale

clerks, graduates of business

administration, laboratory staff,

dairy experts and managerial

staff.

Following German reunification,

the Raiffeisen organization has

assumed the function of advising,

serving and auditing the agricul-

tural cooperatives of eastern Ger-

many. They cultivate approxi-

mately one third of the agricultural

land in that part of the country.

765 agricultural cooperatives

with some 25,000 members

generated a turnover of roughly €

2.0 billion in 2014. More than

25,000 workers are employed in

these enterprises.

The entire Raiffeisen organization

generated a turnover of some €

66 billion in 2014, with a modest

increase in volumes compared to

previous years.

13

3. LINES OF BUSINESS OF THE COOPERATIVE ORGANISATION

3.3. SMALL-SCALE INDUSTRY COMMODITY AND SERVICE COOPERATIVES

REWE - THIS MEANS A LEVEL OF QUALITY FROM WELL KNOWN BRANDS AND AFFORDABLE PRICES.

TIFA TIEFKÜHLKOST-ALLIANZ EG IS THE

LEADING PROVIDER OF FROZEN FOOD IN THE

GERMAN AND AUSTRIAN FOOD TRADE.

Further Information: DER MITTELSTANDSVERBUND (SME Groups Germany) – ZGV e.V.

3. LINES OF BUSINESS OF THE COOPERATIVE ORGANIZATION

3.3. SMALL-SCALE INDUSTRY COMMODITY AND SERVICE COOPERATIVES

Many countries have been looking

to Germany with admiration for

many years: what is the secret of

Germany’s small- and medium-

sized enterprises? How has it

managed to outperform all other

economies and to maintain such a

highly qualified workforce? The

recipe for success adopted by

Germany’s SMEs lies in their

cooperation with many companies

along cooperative principles.

Germany’s SMEs compensate for

their disadvantages in size

compared with other competing

powerful market players and

international corporations.

Cooperatives organize large parts

of the trades and retail industry

and also the liberal professions in

Germany, and operate in more

than 45 sectors. As almost all

markets are marked by a high

level of concentration, the

economic activities of coopera-

tives play an important role for

both their members and the

viability of small and medium-

sized businesses, ensuring

competition throughout Germany

in the process.

The philosophy of cooperation

reflects the determination of small

and medium-sized enterprises to

survive in the face of increasingly

powerful competition from large

corporations.

This general principle is still valid

today. Small-scale industry

cooperatives enhance the com-

petetiveness of their members –

retailers, traders and members of

liberal professions. Cooperation is

facilitated by combining creativity

with business community

strength.

14

IMPORTANT FIGURES SMALL-SCALE INDUSTRY COMMODITY AND SERVICE COOPERATIVES (AS OF 31-12-2014)

primary cooperatives number

of coops turnover

2)

in m €

cooperatives in the food and associated retail trades (e.g. EDEKA, REWE, tobacco)

53 211 1)

cooperatives in non-food retail trade (e.g. domestic appliances, shoes, pharmacies, chemists, textiles)

98 24,193

cooperatives in food-producing trades (e.g. bakers, butchers)

83 3,466

cooperatives in non-food trades (e.g. roofers, painters, interior decorators, carpenters)

95 2,819

cooperatives in liberal professions and other occupational groups (e.g. medical doctors, architects, tax consultants)

362 1,173

production and other business cooperatives (e.g. abattoirs)

148 520

transport cooperatives (e.g. road transport, inland waterways)

119 540

productive service cooperatives (e.g. hairdressers, building cooperatives)

151 128

water cooperatives 146 4

total 1,255 33,054

central cooperatives

retail trade: 2 7 84,000

1)

trades: 5

total 1,262 117,054

1) The figure of the EDEKA group and REWE group is recorded under central cooperatives. 2) provisional figure

HEADQUARTERS INTERSPORT EG IN HEILBRONN,

ABOUT 5,000 STORES IN OVER 30 COUNTRIES

FORM THE LARGEST NETWORK OF INDEPENDENT

DISTRIBUTORS.

This ensures that entrepreneurs

remain flexible, independent and

self-determined while, at the same

time, cooperatives offer support,

stability and strength. A scientific

study of the federation has clearly

demonstrated that: cooperating

companies have a lower risk of

insolvency than loners. Members

of cooperatives acquire know-how

and network benefits through the

modern concepts of central

cooperation and benefit from the

important competitive advantages

this creates.

Small-scale industry cooperatives

present themselves as highly-

complex innovative linkup groups

with many international activities.

Besides selling products in line

with market demands, they offer

the entire range of business

administration and corporate

policy consultancy, including the

15

30 BÄKO-COOPERATIVES GENERATE A TURNOVER OF € 2.139 BILLION,

PHOTO: BÄKO MITTELBADEN EG, KARLSRUHE.

ABOUT 4,000 INDEPENDENT EDEKA-MERCHANTS SHAPE THE DYNAMIC OF THE GROUP – PHOTO: FISHES CORNER OF A EDEKA MARKET.

opening-up of new markets

across the world, the application

of new information and communi-

cations systems, diverse marke-

ting activities and also the

provision of efficient logistics.

Consultancy and advanced

training programs complete the

range of services they offer. In

keeping with their business

mission, small-scale industry

cooperatives operate at local,

regional, national and increasingly

at the international level as well.

Regionally active cooperatives

work together in central coope-

ratives, while those operating

nationwide are frequently involved

in cooperation at the European

level. Small-scale industry

cooperatives mainly operate in the

following sectors :

> food and associated retail trade

(e.g. EDEKA, REWE, tobacco

products trade, special

purchasing organizations for

confectionery and beverages),

> consumer goods retail trade

(e.g. domestic appliances, home

electronics, shoes, sports

articles, pharmacies, chemists,

textiles),

> food-producing trades

(e.g. bakers, butchers) and

> other trades

(e.g. roofers, painters, interior

decorators; plus hairdressers

and shoemakers) and

> services.

In addition, there are seven central

cooperatives in Germany, two of

which operate in the retail and five

in the trade sector.

16

THE COOP EG AT KIEL IS THE LARGEST CONSUMER COOPERATIVE IN GERMANY.

WITH 60,000 MEMBERS, 9,000 EMPLOYEES AND 750 APPRENTICES THE COOP EG IS

GERMANYS LARGEST CONSUMER COOPERATIVE IN THE FIELD OF FOOD RETAILING. COOP

EG IS A MODERN COOPERATIVE WITH A LONG TRADITION AND STRONG REGIONAL ROOTS.

SINCE ITS FOUNDATION IN 1899, COOP EG HAS DEVELOPPED TO BECOME AN INNOVATIVE

RETAIL COMPANY WHICH TODAY OPERATES WITH MORE THAN 200 SUPERMARKETS IN THE

NORTH OF GERMANY.

KONSUM MARKET IN DRESDEN'S CENTRE GALLERY.

3. LINES OF BUSINESS OF THE COOPERATIVE ORGANIZATION

3.4. CONSUMER COOPERATIVES

Consumer cooperatives operate

under various names, such as

"CONSUM", "Coop", or a com-

pletely different name. Whatever

name they have they - always

involve the collective purchasing

of many different individuals.

Cooperative retail companies

offer members food and goods

for daily use. Member custo-

mers can actively shape the

business policy of the company.

As well as traditional food retail

companies and consumer

cooperatives, bio-shops, online

shops, world-shops or specialty

mail order companies are also

organized in the legal form of

cooperatives and successfully

fill market niches. In a broad

sense, cooperatives such as the

daily newspaper taz also belong

to the group of consumer

cooperatives. This daily

newspaper has been on the

market since 1992. More than

14,800 readers ensure the

economic and journalistic

independence of "their"

newspaper.

Some independent schools

have organized their school

boards as cooperatives and rely

this legal form for the profess-

ional management of the capital

transferred to them and to

provide their schools the stability

they require.

17

THE INVOLVEMENT OF LOCAL CITIZENS IN ENERGY COOPERATIVES INCREASE

ACCEPTANCE.

3. LINES OF BUSINESS OF THE COOPERATIVE ORGANIZATION

3.5. ENERGY COOPERATIVES

Over the last three decades

numerous citizens' groups, local

town councils and businesses

have got together to launch

renewable energy projects in their

region. Energy cooperatives are

one increasingly popular means

of organizing these projects.

Cooperatives provide all sorts of

opportunities and scope for

participation. What is more, each

member of a cooperative has one

vote. Projects can be carried out

democratically with many equal

partners, each with their own local

roots. Around 800 successful new

cooperatives have been founded

in the field of renewable energies

in Germany in recent years.

Photovoltaic cooperatives, for

example, enable many citizens to

make a modest financial

contribution to developing

renewable energies in their own

local area. PV systems are often

launched jointly by decision-

makers in local authorities, public

institutions and regional banks.

Systems can also be mounted on

roofs – such as public buildings,

including nurseries or schools –

which are not used by individuals.

These systems are installed and

maintained by trade businesses

based in the region.

As well as providing energy from

the sun and other renewable

energy sources, cooperatives also

run district heating and electricity

networks. Cooperatives have

operated as regional energy

utilities in many parts of Germany

for well over 100 years. In many

cases it is energy cooperatives

which are providing important

impetus for the decentralized

energy transition. Cooperatives

facilitate the collective

commitment of various local

players and bring together

broader social, business,

municipal and environmental

interests. They also help

renewable energy projects to gain

more widespread acceptance in

the region.

A growing field of business

activity for energy cooperatives is

wind power. One of the first

energy cooperatives to implement

a wind project was the Energiege-

nossenschaft Starkenburg eG.

18

ACADEMY GERMAN COOPERATIVES ADG E.V., SCHLOSS MONTABAUR.

4. COOPERATIVE FEDERATIONS

REGIONAL LEVEL

Regional cooperative federations

and specialised auditing federa-

tions with nationwide operations

are modern service providers.

Cooperative auditing federations

within the meaning of the

Cooperative Act are not only

competent in auditing their

members, but also in consulting

and training. Their mission

statement is based on the

cooperative principles of self-

help, self-management and self-

responsibility. The core function

of cooperative auditing

federations consists of carrying

out the compulsory audit of

affiliated cooperatives. Auditors

examine the business status and

the management system in

respect of its proper and prudent

conduct. This audit also includes

the active audit and prevention.

The cooperative federations

provide their members with a

comprehensive consulting

service, ranging from cooperative

legal advice through to tax

consultancy.

The aim is to provide solutions

for all matters of business

management, so as to promote

the competitiveness of affiliated

cooperatives and to strengthen

their market position. The

federations are dependent on

highly skilled and dedicated

employees in order to meet their

self-imposed requirement. The

basis for this is a comprehensive

education and training approach.

This also applies to the affiliated

cooperatives. Staff qualification is

a key factor that makes a

company unique for its

customers. The federations ad-

vise on staff development and

offer training for managers,

employees and apprentices. The

federations maintain training

facilities at a total of 9 locations.

The top-level institution for

cooperative training is the

Academy of German Cooperative

(German abbrev. ADG), which

offers 1,305 seminars and

subject-specific meetings each

year for more than 17,000

participants.

NATIONAL LEVEL

> German Cooperative and

Raiffeisen Confederation reg.

assoc. (DGRV)

The statutory mission of DGRV

consists in promoting and deve-

loping the cooperative system

and cooperative auditing.

The DGRV is a centre of

excellence for its members in

matters of business

management, accountancy and

cooperative auditing. It addres-

ses the economic, legal and

fiscal policies which affect all

cooperative sectors. The

federation conducts all types of

audits, advises and promotes its

members.

The DGRV coordinates work on

the educational policy of coope-

ratives and advises organi-

zations in educational matters.

Training of junior auditors and

auditing staff takes place in close

coordination with the ADG.

The DGRV is affiliated to various

national and international coope-

rative organizations and institu-

19

THE DZ BANK BUILDING AT BERLIN,

HEADQUARTER OF THE DGRV AND THE DRV.

THE BVR HEAD OFFICE, BERLIN.

tions. The federation promotes

the development of cooperative

systems in many countries world-

wide by giving technical advice and

sharing expertise and is supported

in its activities by the cooperative

organization in Germany.

> National Association of German

Cooperative Banks reg. assoc.

(BVR)

At the national and international

level, the BVR represents the

interests of the cooperative banking

group. Within the group, the

Association coordinates and

designs the common strategy of

Volksbanken and Raiffeisen-

banken. All German cooperative

banks are affiliated to it, including

the Sparda-Banks and PSD banks

in addition to Volksbanken and

Raiffeisenbanken. All of these

banks are covered by the BVR

institutional protection scheme

which provides complete

institutional protection as well as

guaranteeing complete security, for

the deposits of cooperative

members and customers.

> German Raiffeisen Federation

reg. assoc. (DRV)

The DRV represents the interests of

cooperative enterprises of the Ger-

man agricultural and food industry.

As a competence centre the DRV

supports its member companies as

well as political and administrative

decision makers in receiving or pro-

viding specialized information. The

DRV is one of the pillars of the

German cooperative organization

with its wide range of services.

> SME GROUPS GERMANY -

ZGV

The ZGV’s mission consists in

promoting the affiliated association

in the retail, trades and service

industries and facilitating the

development of external forms of

cooperation between small and

medium-sized enterprises (SME).

It aims to balance out the structural

disadvantages of SMEs vis-a-vis

large corporations by means of

lobbying.

> Central Federation of German

Consumer Cooperatives reg.

assoc. (ZdK)

The ZdK mainly organizes consu-

mer and service cooperatives

whose members are not engaged

in industrial or agricultural work.

Half of these cooperatives have

been founded over the last ten

years. The interests of these young,

mostly small cooperatives are

actively represented by the

association.

It is the function of these national

federations to promote the

business, legal and fiscal policy

interests of their affiliates towards

German authorities and at the

level of the European Union. They

are the mouthpiece of their

members and influence decision-

making processes related to

societal and political matters. In

response to the important role of

the European Union for coope-

ratives, the national federations

have established their own liaison

offices in Brussels.

20

NATIONAL

LOCAL

REGIONAL

National Association of

German Cooperative Banks

reg. assoc.

German Raiffeisen

Federation reg. assoc.

SME GROUPS GERMANY - ZGV Central Federation of German

Consumer Cooperatives reg. assoc.

21

FOOD DIVISION OF THE CO-OPERATIVE GROUP IN GREAT BRITAIN. IN THE PICTURE: WETHERBY IN WEST YORKSHIRE.

5. COOPERATIVES IN EUROPE

Cooperative enterprises are wide-

spread in all parts of Europe. 31%

of all cooperative enterprises oper-

ate in France, 19% in Spain, 16%

in Italy and 5% in Germany.

The European Union’s 2003

Regulation on the Statute for a

European Cooperative Society

points out that cooperatives are

primarily groups of persons or

legal entities with particular ope-

rating principles which differ from

those of other economic agents.

Democratic structures, control and

fair distribution of the profits for the

financial year are among the

principles of on which coopera-

tives operate. Article 48 (2) of the

EC Treaty refers to cooperatives

and explicitly includes them in the

category of “companies or firms

constituted under civil and

commercial law”.

Cooperatives are therefore

regarded as enterprises which

perform services for remuneration

and which finance themselves

through such remuneration.

EU Legislation demonstrates that

cooperatives are enterprises which

are active on the market and

which must therefore prove them-

selves to be viable and compete-

tive operations. According to

Cooperatives Europe, there are

267,000 cooperatives in Europe

which provide 5.4 million jobs. 163

million individuals benefit from

member-ship in a cooperative.

Cooperatives are particularly

active in the banking, services,

retail, agriculture, insurance and

housing sectors. Production and

social cooperatives form another

group.

Cooperative banks are big players

in the European internal market.

They hold an average market

share of nearly 20%. One in two

banks in Europe is a cooperative

bank. Rural cooperatives are wide-

spread throughout Europe as well

and enjoy enormous market

shares. Dairy cooperatives, for

example, hold a market share of

97% in Denmark and Ireland, 94%

in Austria and 85% in the Nether-

lands. All farmers in Ireland, 90%

of all French farmers and 73% of

farmers in the Czech Republic

are members of at least one co-

operative.

These few examples illustrate the

important role of cooperative

enterprises in Europe and the

economic success attained by

this form of collaboration.

22

THE DGRV HAS ACCOMPANIED THE DEVELOPMENT PROCESS OF THE SAVINGS AND

CREDIT COOPERATIVES IN MANY COUNTRIES OF LATIN AMERICA FOR MORE THAN TWO

DECADES AND ASSISTED IN SHAPING IT AT VARIOUS LEVELS.

6. DGRV – SUCCESSFUL CONSULTANCY ACROSS THE GLOBE

The DGRV has been involved in

development cooperation since its

inception in 1972. However, the

transfer of know-how from German

cooperatives to other countries

and regions of the world dates

back much further. Japan, for

example, used German coope-

rative legislation as a blueprint

more than 100-years ago. Many

other countries also followed suit

to create legal frameworks for

cooperatives. The cooperative

organization has always

considered international

cooperation as a commitment to

be acted upon. By supporting

cooperatives and their networks,

the DGRV contributes to economic

and social development in partner

countries, and thus to the fight

against poverty.

With the 2000 Millennium Decla-

ration, the Member States of the

United Nations set themselves

binding goals. Today, Sustainable

Development Goals characterize

the post-2015 debate. These

Goals shall apply to all countries

and are based on the three

fundamental principles of human

rights, equality and sustainability.

Civil society organizations and the

corporate world are also called

upon to work towards these goals.

Despite considerable progress

already made in some countries, a

major part of the world population

continues to live in poverty.

Unfavourable basic political and

economic conditions impede

further development; moreover,

access to both regional markets

and the world market is non-

existent. The negative impact is

felt in the rural areas, in particular,

with resultant rural exodus and

migration.

Micro, small and medium-sized

enterprises, in particular, which

are drivers of development in other

parts of the world, lack access to

financial services, markets, tech-

nologies and know-how. There is

also a lack of legal security,

transparent governance or an

economic order which offers equal

opportunities to all business-

minded individuals alike. This re-

quires capacity-building amongst

SMEs and greater opportunities

for self-employed business people

in order to generate employment

and income.

A substantial part of the funding

for the international activities of

the DGRV comes from the

Federal Ministry for Economic

Cooperation and Development

(BMZ). The Federal Government

supports economic and social

development and, in so doing,

contributes to poverty eradication

and security across the globe.

Development of social structures

plays an important part in this

context. The aim is to improve the

living conditions of impoverished

groups of the population in a sus-

tainable manner.

Self-help policies are important in

attaining this aim as well as for

business development: at the end

of the day capacity building is the

only option if poverty is to be era-

dicated for good. This is where the

DGRV comes in with its

23

TRAINING OF BAKERY COOPERATIVE

MEMBERS IN PRETORIA, SOUTH AFRICA.

CREDIT CONSULTING FOR A SMALL ENTERPRISE.

experience in development

cooperation.

Cooperatives and their corres-

ponding networks influence the

social and economic structure of

a country in a positive manner: in

finance, commerce, crafts and in

agriculture, they are the back

bone of business activities in

many countries. Driven by local

initiative and economic power,

they contribute significantly to the

development of countries where

individuals are both the benefi-

ciaries and actors of their econo-

mic activities. Cooperatives are

amongst the most viable forms of

business; they combine the ad-

vantages of decentralized acti-

vities and the strengths of region-

al and national networks.

To this end, the DGRV supports

the establishment of cooperative

structures for savings and credit,

in commerce and agriculture in

partner countries. For many,

savings and credit societies pro-

vide access to financial services

for the first time, especially in rural

areas. In addition to small loans,

they frequently offer services for

savings, the transfer of money and

insurance, as well as business

advice and advanced training.

In other words, cooperative micro-

finance institutions mobilize the

potential of individuals locally, and

thus enhance development in a

very concrete manner. In rural

areas, cooperatives offer their

members access to regional and

supra-regional markets and a

better income as a result. In crafts

and commerce, cooperatives open

new channels to markets for pro-

curement and selling.

In consequence, cooperatives

deliver a high level of sustainability

and a large potential for develop-

ment, also owing to their owner-

ship structure, member partici-

pation and integration into net-

works.

Every cooperative needs to ope-

rate efficiently for it to be able to

provide services for the benefit of

its members (Förderauftrag). This

calls for certain conditions to be in

place.

> In individual cooperatives – i.e.

at the micro-level – a consistent

business orientation, adequate

internal organization and well-

trained managers and staff are

required.

> In addition, cooperatives must

be part of an integrated subsi-

diarity-based network at the meso-

level in order to benefit from the

services provided by specialized

central enterprises and associa-

tions, such as for training and

auditing.

> At the macro-level, government

musts create an adequate legal

and regulatory framework for

cooperative activities.

DGRV projects provide consul-

tancy and services at all three

levels, mostly within the framework

of multiannual programmes. In

addition, the DGRV reacts flexibly

and at short notice to requests

from individual countries or organi-

zations. The comprehensive know-

how of the entire German

cooperative organization is

available for DGRV activities of

this kind.

24

I. NATIONAL FEDERATIONS

II. REGIONAL AND SPECIALIZED AUDITING FEDERATIONS

7. IMPORTANT ADDRESSES – AT A GLANCE

25

III. COOPERATIVE CENTRES AND SPECIALIZED INSTITUTIONS

26

27

Photos: cover: Baden-Württembergischer Genossenschaftsverband page 11 below: REWE Group-Unternehmenskommunikation, Köln e. V., Karlsruhe page 12: INTERSPORT Deutschland eG, Heilbronn Deutscher Raiffeisenverband e. V, Berlin page 13 top: BÄKO Mittelbaden eG, Karlsruhe page 3 top: Gesundheitslandschaft Vulkaneifel eG, Daun page 13 below: EDEKA Zentrale AG & Co. KG, Hamburg page 3 below: Bundesverband der Deutschen Volksbanken und page 14 top: coop eG, Kiel Raiffeisenbanken e.V., Berlin page 14 below: KONSUM Dresden eG, Dresden page 4: Bausparkasse Schwäbisch Hall AG page 15: Energiegenossenschaft Starkenburg eG page 5: Volksbank eG, Waltrop page 16: Akademie Deutscher Genossenschaften e.V., page 6 left: Berliner Volksbank eG, Berlin Schloss Montabaur page 6 middle: Verband der PSD Banken eG, Bonn page 17 top: DZ Bank AG, Frankfurt page 6 right: Raiffeisenbank Emsland-Mitte eG, Klein Berßen page 17 below: Bundesverband der Deutschen Volksbanken und page 8 top: Deutscher Raiffeisenverband e. V., Berlin Raiffeisenbanken e. V., Berlin page 8 below: Raiffeisenagrar Bawinkel-Freren eG page 19: Michael Taylor page 9: Bundevereinigung der Erzeugerorganisation Obst und page 20-21: DGRV, Abteilung Internationale Beziehungen, Bonn Gemüse e. V., Berlin page 10 top: DMK Deutsches Milchkontor GmbH, Zeven page 10 below: AGRAVIS AG, Hannover und Münster page 11 top: TIFA Tiefkühlkost-Allianz eG, Wiesbaden

German Cooperative and Raiffeisen Press and Public Pariser Platz 3 Tel. (+49) 30 / 72 62 20 – 69 00 Confederation reg. assoc. Relations Department D-10117 Berlin Fax (+49) 30 / 72 62 20 – 69 89